April 12, 2011 IPAA 2011 Oil & Gas Investment Symposium New York, NY
SandRidge Company Overview Financial and Operational Summary Operations Overview Permian Mid-Continent 210,000 net acres Mississippian Market Value 7,700 locations OKLAHOMA CITY 880,000 net acres Current rig count: 16 3,400…
SandRidge Quickly Shifted from Gas to Oil Value ratio of Oil to Gas 27:1 Current Ratio 30 Defined Oil 25 Strategy Executing Oil Hedged Gas Strategy 20 15 10 5 4 www.SandRidgeEnergy.com
Oil Strategy Shallow, Low Cost, Conventional Acquisition of Permian Central Basin Platform CBP properties 7,600 Boepd in December 2009 (FST) 8,200 Boepd in July 2010 (ARD) Current 185,000 acres Central Basin Platform Oil Drilling…
Leading the Industry in Oil Dedicated Drilling Percentage of Rigs Dedicated to Oil(a) 100% 80% 60% 40% 20% 0% Number of Rigs Dedicated to Oil 50 40 30 20 10 0 (a) Excludes rigs dedicated to disposal or…
Availability of Rigs Mitigates Cost Pressures Image obtained from The Land Rig Newsletters 4Q2010 DAY RATE REPORT 7
Permian Basin Central Basin Platform Shallow, Carbonate Oil Play Has produced oil for over 80 years Is the 3rd largest petroleum producing area in the U.S. after the Gulf of Mexico and Alaska 29 billion barrels produced from the…
Permian Basin Central Basin Platform 2,000 Platform Carbonates 3,000 Yates 4,000 Grayburg San Andres 5,000 Clear Fork 6,000 Delaware Basin Midland Basin Wichita - Albany 7,000 8,000 Wolfberry Bone Spring…
Central Basin Platform Overview High Rate of Return Oil Drilling Low Drilling Costs Predictable Production Profiles Low Acreage Costs ( 185,000 Net Acres) Certainty of Economic Return SD is most active driller with 16 of 42…
Central Basin Platform Economics 7,700 Potential Locations(a) 75 Mbbl (79% Crude) 47 Mmcf, dry 83 Total Mboe 760M/well 65 Boepd 30 day IP 97% ROR(b) (a) After giving effect to completed and pending Permian divestitures…
Permian Asset Value Growth (YE09 through YE10) Net Investment PV-10 Value Reserves 1,871 MM (a) (b) (a) (b) PV-10 Value Growth = 3,249 MM Net Investment = 1,871 MM Growth of Investment = 1,378 MM Reserve Growth = 162…
What Makes Central Basin Platform a Great Play Economics Characteristics IRR(a) 97% Scale 185,000 acres NPV per Well (MM)(a) 1.2 7,700 locations F&D (/Boe) 12.25 Type Curve EUR (Mboe/well) 83 Reservoir Knowledge Carbonate…
Mid-Continent Horizontal Mississippian Oil Overview High Perm, Carbonate Oil Play Shallow oil target (< 6,000 TVD) Extensive reservoir control from thousands of vertical wells Conventional, high perm, carbonate reservoir 300-500…
Horizontal Mississippian Oil Play 160 Miles KS OK 100 Miles 6.5 Million Acres SandRidge Focus Area 17,000 ( 7,500 within ) Vertical Mississippian producing wells SandRidge currently owns 880,000 net acres 52 SandRidge…
Mississippian Vertical Performance (EUR) Higher Oil Ratio Higher Gas Ratio Comanche Barber Sumner Cowley 224 Mboe 199 Mboe Harper 110 Mboe 60 Mboe 139 Mboe KS OK Grant Kay 177 Mboe 97 Mboe Alfalfa Woods 141 Mboe 216…
Mississippian Horizontal Performance (30 Day Average) Exceptional Performance Across Play Area Peffly Dutch Meyer 750 boepd 792 boepd Barnard 671 boepd Kilian 780 boepd (a) KS OK Sundance 541 boepd Victor 892 boepd…
Horizontal Mississippian Oil Economics 3,400 Potential Locations 211 Mbbl (100% Crude) 1,186 Mmcf 409 Total Mboe (a) 2.7MM/well 244 Boepd 30 day IP 152% ROR(b) (a) Includes capex allocation for water disposal…
Horizontal Mississippian Oil Performance Horizontal Performance Data Vertical Performance Data Average Well Performance vs Type Curve Production 1000 400 350 Average PDP EUR: 470 Mboe 100 300 NSAI PUD EUR: 409 Mboe 250 10…
Horizontal Mississippian Oil Industry Activity SandRidge SandRidge Range Pablo / Chesapeake 300 to 500 Mboe EUR Energy Resources Territory 22 days to drill (4,000 lateral) 2.7 million D&C 409 Mboe EUR (NSAI Consultant) Chesapeake…
What Makes Horizontal Mississippian a Great Play Economics Characteristics IRR(a) 152% Scale 880,000 acres NPV per Well (MM)(a) 6.3 Early mover in the play F&D (/Boe) 8.18 Type Curve EUR (Mboe/well)(b) 409 Reservoir Knowledge…
Hedging Contracts in Place as of April 4, 2011 Year Ending 12/31/2011 12/31/2012 12/31/2013 Oil Swaps: Volume (MMBbls) 8.65 10.00 9.89 Swap 86.80 87.87 93.99 Natural Gas Swaps: (a) Volume (Bcf) 45.82 19.57 0.00 Swap 4.63…
Significant Gas Upside Potential Gas Resource Locations(a) Sahara WTO / Pinon 5,528 Sahara Oklahoma 994 OKLAHOMA CITY East Texas 1,465 Other 51 SD Total 8,038 MIDLAND East Texas FT. STOCKTON West Texas Overthrust Texas…
Conclusion / Investment Considerations Completed our transition to oil Defined strategy of developing shallow, low cost, low risk, conventional, carbonate reservoirs Executing our two large core oil assets Expecting 16% overall…
Appendix
SandRidge Snapshot (NYSE: SD) Financial Overview Bonds and Preferred Stock ( in millions, YE 2010 Balances) ( in millions, Pro Forma Amounts ) (c) Market Capitalization (a) 5,321 Senior Notes Basic Shares Outstanding (million)(b)…
Senior Note Maturity Schedule No maturities until 2014 Staggered maturity horizon Weighted average maturity: 7.4 years 1,200 1,000 900 800 750 ( in Millions) 600 450 350 366 400 200 0 2011 2012 2013 2014 2015…
2011 Operational Guidance Production Oil (MMBo) (a) (1) (MMBbls) 12.3 Natural Gas (Bcf) 66.5 Total (MMBoe) 23.3 Differentials Oil (a)(1) 11.00 Natural Gas 0.75 Costs per Boe Lifting 11.80 - 13.10 Production Taxes 2.05 - 2.30…
Contact: Kevin R. White SVP Business Development 123 Robert S. Kerr Avenue Oklahoma City, OK 73102 405-429-5515 kwhiteSandRidgeEnergy.com www.SandRidgeEnergy.com
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